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Koba Gvenetadze

Minimum Capital Requirement is Increased up to 50 mln for the Banks

March 2, 2017808 Views

Mandatory minimum of capital requirement is increased for the commercial banks.

According to Koba Gvenetadze, president of National Bank of Georgia, capital requirements have not been changed for the commercial banks after 2006 and today the increase is conditioned due to the the general practice, but it does not mean that any financial risk are balanced, today all banks perform the established norms.

“Today, the index is lowest in Georgia and this is a sign that financially strong institutions will be able to operate in the country”, – president of NBG declared.

According to him, capital growth will be made gradually and capital minimum for each bank will be 50 million GEL by late 2018. To note, three banks out of 16, operating on the market, will have to grow the capital by that time.

“This will be guarantee of fanatical stability”, – Mercedes Vera Martin, head of IMF Mission so estimates initiative of NBG’s president.